Members Gain Access to Reimbursement Exceptions With Some Paperwork

The NBAA has been given an extension to its Small Aircraft Exemption through March 31st, 2026, which will "allow members to take advantage of the flexibility enjoyed by larger turbine aircraft.

The current version of Exemption 7897M offers aircraft operators of piston powered, sub<12,500 lbs, or rotorcraft a few advantages like the use of alternative maintenance programs and limited cost-reimbursements of certain flights under Part 91. The cost sharing benefits of Part 91 Subpart F are usually limited to those heavier 12,500-lb+ aircraft, multi-engine jets, or fractionally owned planes. Cost Reimbursement can be useful in cases of transporting guests aboard company planes, or the use of aircraft by employees and subsidiaries.

"This valuable exemption allows operators of piston-powered airplanes, small airplanes and rotorcraft to realize the cost-sharing benefits outlined in Part 91 Subpart F, making more effective use of their aircraft," said Doug Carr, NBAA's senior vice president of safety, security, sustainability and international affairs. "It's important that members understand and comply with the Letter of Intent submission to the docket and notification to FSDOs to ensure the NBAA Small Aircraft Exemption continues to be valid and is utilized appropriately."

There's a new requirement for operators looking to use the exemption introduced in 2022. In order to do so they must file a Notice of Joinder or Letter of Intent, and is now required to utilize Exemption 7897M, even for those who already have a notice on file. The letter must include all the usual data, but interesting enough, it requires an NBAA member number, too. After providing the letter, operators must notify the local FSDO of the intent too.

FMI: www.nbaa.org